Inching closer to the exits

[muldoon]

I posted on Russia selling off USA debt and not buying new a few days ago. 

Yesterday comes the announcement from Japan
http://www.marketwatch.com/news/story/us-treasury-reassures-japanese-investors/story.aspx?guid={B5CC7053-F4A5-4E9C-9DC3-383259C21157}

and today the warning shot from China
http://www.chinadaily.com.cn/china/2008-09/12/content_7020656.htm

Inching to the exit, cant all get out alive, maybe first one out gets to keep his money, if we all go we all lose, what to do?

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Didn't anyone tell Hank Paulson theres a credit crunch going on these days and getting funding is tougher for everyone?  The more risk and fraud he puts on the government books the worse our credit score is.  We can see our credit score going down daily via the CDS swaps on treasury.  It's getting more expensive as our treasuries get riskier every day.  They doubled the treasury debt obligation from 5.1t to 10.7 trillion in just a weekend, seems our creditors are getting nervous as they talk about giving more money to failed management after failed management.

[John Raabe]

With the recent foray into Mac & May debt nationalization the US has doubled its (our) national debt.

While it is not quite that simple, it is still no surprise that US debt is seen as less valuable than it was a few months ago.

In some ways we have just been kicking the problems upstairs - when large mortgage brokers can't get financing and we socialize that debt... soon, guess what, the US will no longer be able to get financing either.

Is this a fix to the problem?

And with the US on shaky ground, can a few better-run economies (Denmark, Norway, etc.) pick up the slack of the world's largest debtor nation?

Stay tuned for breaking developments...

[ScottA]

I'm waiting for the government to start siezing all the assets of these people who are walking away from their mortgages. Since the Federal government now owns all these notes I look for IRS style collections to start next.